Shopping Back-To-School Sales?

If You Are Back-to-school Shopping, Get Smart And Shop College Savings Plans, Too.

The back-to-school sales have already started (can you believe it?), which means the end of the summer will soon here. But along with the pens, pencils, notebooks, and other things you’ll need for your children, now’s the time to also think about beefing up your 529 savings plan or starting one if haven’t already.

What is a 529?

A 529 plan is a tax-advantaged savings plan designed to encourage saving for future college costs. 529 plans, legally known as “qualified tuition plans,” are sponsored by states, state agencies, or educational institutions and are authorized by Section 529 of the Internal Revenue Code.

The back-to-school season is the perfect time to shop around for a good 529 plan. Why? 529 plans are designed to be long-term savings, which means its always better to start sooner rather than later.

There are two types of 529 plans—prepaid tuition and college savings plans. Prepaid tuition plans help you lock-in the cost of college by buying credits at participating institutions. College savings plans are more like investment accounts that you contribute to regularly. Which one you prefer really depends on your savings style and risk tolerance, and whether or not you know which school your child or children will be attending. Additionally, there are often fees involved with each, which may impact your decision.

There are tax advantages for each plan, as well. Earnings are not taxed at the federal level, and depending on which plan you buy, there may be state tax benefits as well. But, it’s important to be aware that you can also be penalized if you do not use the funds for eligible college expenses.

Another great aspect of college savings plans is that they are transferable. That means that you can change beneficiaries without any costs or penalties. If one child doesn’t go to school, you can always transfer it to a sibling, or you can even save it for a grandchild. As long as you use the money for eligible expenses, you’ll always be able to spend it tax-free.

What’s included in eligible college expenses? Typically, it’s all the expenses associated with attending college: tuition, room and board, fees, books, etc. However, it’s important to note that some pre-paid savings plans don’t necessarily cover all expenses.

To learn more about saving for your children’s college expenses, contact us.

Since 1984, WeberMessick has been helping clients answer their toughest financial questions. A properly structured financial plan helps you face the financial challenges that may be present at any stage of life. Through our planning process, we can help you assess your financial needs and develop strategies to set you on the path to the future you want.

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. WeberMessick is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not offer legal or tax advice and are not Certified Public Accounting Firms.

This site is published for residents of the United States only. Registered Representatives of Kestra Investment Services, LLC and Investment Advisor Representatives of Kestra Advisory Services, LLC, may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed. Not all of the products and services referenced on this site are available in every state and through every representative or advisor listed. For additional information, please contact our Compliance department at 737-443-2582.

Retaining and compensating key executives can be a challenge. Highly compensated individuals demand plans that are tax-preferenced and provide them and their families with protection in the event of death or disability. The success of an organization can also be hindered in the event of unexpected loss of a key executive due to turnover or accidental death or disability. WeberMessick works with businesses and not-for-profits, along with their key executives, on designing plans that help to protect and potentially reward all parties over the long term.

Profit Sharing Plans

Losing key employees is always a risk to a company. Profit sharing plans can be a way to involve key personnel and provide a sense of participating in the profitability of the company. In addition, since most are established with restrictions as to when and how funds can be withdrawn, these plans can act as a deterrent for turnover. We can assist you on determining if and what type of profit sharing plan may be beneficial for your company.

Tax-Favored Retirement Plans

Many variations exist for tax-favored retirement plans. Some examples include qualified plans, non-qualified plans, employer-sponsored, individually-established or insurance arrangements. In some situations, certain accounts may be protected from creditors. With expertise in both tax and investments, the professionals of WeberMessick can evaluate your needs and objectives to help design a plan that is suitable for your unique situation.

Estate Planning

Effective estate planning facilitates the orderly transfer of assets to your beneficiaries, provides protection for your surviving spouse, and can reduce or eliminate the tax due on the transfer of your business and other assets.

To ensure compliance with requirements imposed by the IRS under Circular 230, we inform you that any U.S. Federal tax advice contained in this communication, unless otherwise specifically stated, was not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing, or recommending to another party any matters addressed herein.

Life Insurance and Long-Term Care Planning

WeberMessick’s seasoned financial advisors can assist you with all aspects of insurance and long-term care planning, including:

Long Term Care

Variable Annuities

Fixed Annuities

Life Insurance

Affiliates

As a WeberMessick client you become the beneficiary of a powerful national partnership through our relationships with the Fusion Advisor Network and NFP Securities, Inc. Through these resources, we tap into a substantial network of experts and intellectual capital to bring you cutting edge wealth management strategies and tactics.

Fusion Advisor Network

The Fusion Advisor Network is comprised of independent financial advisory firms with offices across the country. Professionals who are invited to join the Fusion family enjoy the benefits of sharing knowledge, expertise and planning techniques with experienced and highly qualified professionals within the financial services industry. You can benefit from the depth of our combined experience, the diversity of our resources, and the shared knowledge of wealth management strategies.

About NFP Securities, Inc. (NFPSI)

NFPSI is one of the nation’s leading independent broker/dealers, based on gross revenue according to FinancialPlanning.com (ranked 10th, June 2011). NFP Securities, Inc. is a wholly owned subsidiary of National Financial Partners Corp., a publicly traded firm on the NYSE. NFPSI is dedicated to superlative account service through advanced technology and personnel who are courteous, knowledgeable and focused on customer satisfaction. This broker/dealer offers access to some of the leading sources of financial solutions and products and maintains no proprietary products. This ensures that the implementation phase will be carried out with the same attention to quality as was the planning process.

WeberMessick’s independence, experience, education and the combined partnerships with the Fusion Advisor Network and NFP Securities, Inc. allow us to offer you the personalized and customized attention and solutions of a small firm, the strength and expertise of a nationwide network of seasoned professionals, and the resources, technology and oversight of a financially strong, independent broker/dealer. We are a powerful partnership working for you.

Business Succession Planning

Effective coordination of the transition of your business to your successors is critical to ensure its continued success once you decide to remove yourself from the company’s day-to-day operations. As CPA’s and financial planners, we are fully qualified to help address the complex issues of business continuation and can assist you in developing a strategically sound plan.

Trust and Fiduciary Advisory Services

The professionals of WeberMessick can help manage and invest assets for trustees while handling all required fiduciary accounting reporting. Our experienced team of financial planners can assist with structuring beneficiary needs to fit investment policy statements.

Education Planning

Will I have enough saved for college for my child? WeberMessick helps build a path for properly saving for that day when the child leaves the nest and enters college.

Charitable Gift Planning

Nothing is more rewarding than providing for others and causes out of the goodness of your heart. How you give is as important as what you give. WeberMessick works with individuals on designing mechanisms for giving to their favorite causes that protect family interest, maximize the impact of the gift and give tax efficiently.

Estate and Legacy Planning

Effective estate planning facilitates the orderly transfer of assets to your beneficiaries, provides protection for your surviving spouse, and can reduce or eliminate the tax due on the transfer of your business and other assets.* For business owners, providing for business continuity and succession of ownership is essential. We can help guide you through the complex process of getting your financial affairs in order.

*To ensure compliance with requirements imposed by the IRS under Circular 230, we inform you that any U.S. Federal tax advice contained in this communication, unless otherwise specifically stated, was not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing, or recommending to another party any matters addressed herein.

Income, Gift and Estate Tax Planning

At WeberMessick, planning is one of our most important focuses. Knowing what your tax obligations are can help you make informed decisions. More importantly, the proper structuring of transactions in a tax efficient manner also saves real dollars when it comes time to foot the tax bill.

Insurance and Long-Term Care Planning

WeberMessick’s seasoned financial advisors can assist you with all aspects of insurance and long-term care planning, including:

Long Term Care

Variable Annuities

Fixed Annuities

Life Insurance

Retirement Planning

Successful implementation and periodic review of your financial plan can help ensure financial independence during your working years and through your retirement years. We leverage a variety of tools to assist in building your nest egg, including:

Traditional IRA’s

Roth IRA’s

401(k) Rollovers

Fixed and Variable Annuities

Investment Management

As independent financial advisors, we focus on goal-oriented planning for various stages of life. Our extensive tax and business background enables us to view your financial goals in a broader scope to advise you on the appropriate investment opportunities to help increase your potential return, including: